Marketing Research

Example of a double barreled question

-"How satisfied were you with the price and quality of service that you received?" -Price and quality of service are different topics for assessment

Advertising agencies

-Often conduct research designed to help -Create and measure the effectiveness of advertising campaigns -Determine the market potential of a proposed new product or the client's market share -Better understand consumers, their interests and behaviors

Primary Data Research Process

1)Determine data collection method 2)Design data collection forms 3)Design sample 4)Collect data

Secondary Data Research Process

1)Identify data source 2)Aggregate data

Stages in the marketing research process

1)formulate problem 2)determine research design 3)analyze and interpret data 4)prepare the research report

Problem Formulation Process

1. Meet with Client 2. Clarify the Problem/Opportunity 3. State the Manager's Decision Problem 4. Develop Possible Research Problems 5. Select Research Problem(s) to Be Addressed 6. Prepare Research Request Agreement

Types of scales of measurement

1. Nominal 2. Ordinal 3. Interval 4. Ratio

Methods of Obtaining Primary Data

1. Observation 2. Communication

Procedure for Developing a Questionnaire

1. Specify what information will be sought 2. Determine method of administration 3. Determine content of individual questions 4. Determine form of response to each question 5. Determine wording of each question 6. Determine question sequence 7. Determine physical characteristics of questionnaire 8. Develop recruiting message or script 9. Reexamine steps 1-8 and revise if necessary 10. Pretest questionnaire and revise if necessary

6 steps of drawing a sample

1. define 2. sampling frame 3. sampling procedure 4. sample size 5. sample elements 6. collect data

Who does marketing research?

1. producers of products and services 2. advertising agencies 3. marketing research companies

Probability Sample

A sample in which each target population element has a known, nonzero chance of being included in the sample

Nonprobability Sample

A sample that relies on personal judgment in the element selection process Neither sampling error nor the margin of sampling error can be estimated or calculated

Disguised Communication

Attempts to hide the purpose or sponsor of the study Used to help create a more natural environment in which to collect data

Ex. of ordinal

Brand Preference Income (in categories)

Ratio

Comparison of Absolute Magnitudes Comparison of Intervals Order Identity

Interval

Comparison of Intervals Order Identity

Ordinal

Comparison of Intervals Order Identity

Causal Research

Condition X causes Event Y

Ex. of interval

Customer Satisfaction Brand Attitude

Structured Communication

Degree of standardization used with the data collection instrument. Fixed-alternative questions, like the beginning of chapter poll questions, have structured questions and response options

Ex. of nominal

Gender Brand Purchase (Yes/No)

Nominal

Identity

No "nice to know" questions

If it isnt necessary dont ask

Ordinal Scale

Measurement in which numbers are assigned to data on the basis of some order (e.g., more than, greater than) of objects -Also take on the properties of nominal scale (identification) -Brand Preference: Rank the following mascara brands (1=Most preferred, 4=Least preferred)

Nominal Scale

Measurement in which numbers are assigned to objects or classes of objects solely for the purpose of identification -Gender: 1=Female, 2=Males -Brand Purchase: Did you purchase Cover Girl mascara? 1=Yes, 2=No -Average: Mode (value occurring most frequently)

Interval Scale

Measurement in which the assigned numbers legitimately allow the comparison of the size of the differences among and between numbers -Also take on the properties of nominal (identification) and ordinal (rank order) scales

Ratio Scale

Measurement that has a natural, or absolute, zero and therefore allows the comparison of absolute magnitudes of the numbers -Also take on the properties of nominal (identification), ordinal (rank order), and interval (rating) scales

Unstructured Communication

Open-ended questions have structured questions with unstructured response options Open-ended responses present interpretation challenges

Which type of scale is a ranking scale? a.ratio b.interval c.nominal d.ordinal

Ordinal

Producers of products and services

Organizations that produce products or deliver services for businesses or consumers often conduct research designed to develop and market their products and services

Which type of scale represents the highest form of measurement?a.nominal scale b.ordinal c.ratio d.interval

Ratio Scale

Measurement

Rules for assigning numbers to objects to represent quantities of attributes

Undisguised Communication

Subjects are aware of the purpose of the study Study is free of any form of deception

True or Fales?Data collected at higher levels can be represented at lower levels; however, data collected at lower levels cannot be represented at higher levels.

True

Ex. of ratio

Units Sold Income

How to spell professors name

Xiaoming Yang

semantic differential scale

a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings ex. unreliable to reliable inconvenient to convenient

Graphic Ratings scales

a scale in which individuals indicate their ratings of an attribute typically by placing a check at the appropriate point on a line that runs from one extreme of the attribute to the other Like not important to important with no points (like 5 boxes like the others) leaving room to place anywhere between the two

funnel approach

a strategy for ordering questions in a questionnaire in which the sequence starts with the general questions, which are followed by progressively specific questions, in order to prevent specific questions from biasing responses to general questions

Which of the following is NOT part of demographic data? a.A feeling toward a brand b.Marital status c.Race d.Income

a.A feeling toward a brand

Which type of research is being conducted when a researcher conducts study to find out if changing the color of the pa of an existing product causes increase in sales? a.causal research (experiments) b.exploratory research (qualitative) c.pilot study research (market entry) d.descriptive research (survey)

a.causal research (experiments)

The raw facts, (recorded measures of certain phenomena) is called ____ while transformed and organized facts in a form suitable for managers to base decisions is called ______________ a.data, information b.Applied, basic c.information, bits d.wisdom, data

a.data, information

Questions that give the respondent no indication of the true purpose of the research are called a.disguised questions. b.structured questions. c.undisguised questions. d.unstructured questions.

a.disguised questions.

Asking the importance of a product attribute in a scale having the ratings of "Very Unimportant", "Unimportant" "Neutral", "Important" "Very Important" categories is an example of a(n) ______ scale. a.interval b.test-retest c.criterion d.nominal

a.interval

Phrases like "unstructured", "touchy, feely, mushy", "small sample size", "insights" indicate to which research design? a.qualitative b.quantitative c.descriptive d.causal

a.qualitative

Which of the following involves any procedure that draws conclusions based on measurements of a portion of the entire population?a.sampling b.theorizing c.segmenting d.causal inference

a.sampling

All of the following can be measured using ratio scales EXCEPT: a.zipcode b.income c.number of employees d.weight

a.zipcode

Sample stats allow what

allow inference about population

The standings of the athletes after a 100 mt sprint, e.g., 1st, 2nd, 3rd etc. would be considered a. Nominal Measurement b. Ordinal Measurement c. Interval Measurement d. Ratio Measurement

b. Ordinal Measurement

Advocacy research refers to a. Research in legal cases b. Research to support a pre-determined position on an issue c. Qualitative research d. Secondary research

b. Research to support a pre-determined position on an issue

Which kind of scale asks respondents to indicate their attitudes by checking how strongly they agree or disagree with carefully constructed statements? a.Constant-sum b.Likert c.Staple d.graphic rating

b.Likert

What is the basic purpose of marketing research? a.To second guess decisions already made. b.To help managers make informed decisions. c.To assist government regulatory agencies. d.To confirm management's decisions

b.To help managers make informed decisions.

Which of the following is a defining characteristic in determining between ratio and interval scales? a.number of items b.measurement done objectively by machine (has absolute zero) c.number of intervals d.nominal values

b.measurement done objectively by machine (has absolute zero)

Multiple-choice alternatives in fixed-alternative questions should not have overlap (e.g., income range $0-$20,000; $20,000-$40,000 and so on) among categories, which means the categories should be: a.collectively exhaustive b.mutually exclusive c.negatively worded d.imbalanced

b.mutually exclusive

All of the following are types of marketing research EXCEPT: a.exploratory b.selective c.descriptive d.causal

b.selective

Which type of bias occurs when a respondent wishes to create a favorable impression or save face in the presence of an interviewer when there is a sensitive survey topic? a.random sampling bias b.social desirability bias c.administrative bias d.interviewer cheating

b.social desirability bias

The practice of selling under the disguise of survey is called ___ in marketing research a.slight of hand b.sugging c.jamming d.balderdash

b.sugging

In the classroom, I defined Marketing as: a. a business philosophy which always creates the greatest shareholders wealth b. a business philosophy which holds that the key to success is having the right information at the right time c. identifying and satisfying consumer needs d. a business philosophy that holds that the key to achieving organizational goals consists in making the marketing department superior to any other department in the organization

c. identifying and satisfying consumer needs

Which one from the following represents quantitative research?a.Inferential and sequential b.Causal and qualitative c.Descriptive and naturalistic d.Survey and experiments

c.Descriptive and naturalistic

What type of research is being conducted to answer the question: "Can we find out the age, gender, and income of our typical purchaser?" a.qualitative research b.focus group research c.descriptive research (survey) d.causal research (experiment)

c.descriptive research (survey)

Which kind of scale has respondents describe their attitude using a series of bipolar adjective rating scales? a.Likert b.constant-sum c.semantic differential d.Graphic

c.semantic differential

statistic

characteristic of a sample

parameter

characteristic of measure of a population

Sugging

contacting people under the guise of marketing research when the real goal is to sell products or services

"Do you agree or disagree with the statement: The US government and the large U.S. banksare responsible for the high foreclosures on home mortgages" is an example of what type of question? a.counterbiasing b.open-ended response c.counterbalancing d.double-barreled

counterbiasing

In the classroom, I defined Marketing Research as: a. doing surveys b. the process of gathering and analyzing, data that may be used to solve a specific marketing problem c. the process of clipping news sources so that the management can keep abreast of what is happening in the environment d. the process of providing a continuous flow of information to marketing managers

d. the process of providing a continuous flow of information to marketing managers

Which of the following is (are) permissible measure(s) of central tendency with interval scales? a.Mean, median, and the mode b.Geometric and harmonic means c.Median and mode d.Mean and median

d.Mean and median

A question that poses some problem or topic and asks respondents to answer in their own words without asking them to tick off predetermined options, is called a(n): a.sentence completion question b.unbalanced question c.fixed-alternative question d.open-ended question

d.open-ended question

"In light of the current horrible economic crisis, do you agree or disagree that the President of the United States is doing a good job of managing the economy?" is an example of what type of question?a.counterbalancing b.order bias c.double-barreled d.loaded

loaded

Advantages of Observation

objective and accurate

Advocacy research

research that is conducted to support a position rather than to find the truth about an issue

Research Problems

restate decision problems in research terms

Population

sample is drawn from this

Likert scale

strongly agree to strongly disagree

Claire believes during ethical dilemmas involving the right of an individual versus welfare of a majority, the welfare of the majority should prevail. Which of the following term best reflects Claire's beliefs?a.teleology b.deontology c.situationalism d.conformism

teleology

What can we do through marketing research?

the organization gathers and interprets data from the environment for use in developing, implementing, and monitoring the firm's marketing plans

Marketing Research

the organization's formal communication link with the environment

Data

the raw facts, recorded measures of certain phenomena

Information

transformed and organized facts in a form suitable for managers to base decisions

Advantages of Communication

versatility, speed, cost

}Area Sampling (Probability Technique)

}A form of cluster sampling that uses census tracks or city blocks as sampling units

Nonprobability sample techniques

}Convenience }Judgment ¨Snowball }Quota

}External Data

}Data that originate outside the organization for which the research is being done

}Internal Data

}Data that originate within the organization for which the research is being done }e.g., Decision Support System

Decision Support System

}Database + Analytical Models + Dialog System

}Descriptive Research

}Describing a population with respect to important variables -ex. Interview suspects and witnesses

}Exploratory Research

}Discover ideas and insights -ex. search for clues to discover what happened

}Snowball Sample (Nonprobability Technique)

}Initial sample chosen by a probability technique (e.g., systematic sampling) then the population elements are asked for referrals of others they know who might be interested in participation ¨Example - A demand study for a new product where initial respondents know people with a high interest level within the product category

}Case Analyses

}Intensive study of selected examples of phenomenon

}Focus Groups have two major pitfalls

}It is easy for managers to see what they expect to see in focus group results }Focus groups are one form of exploratory research - it (or any other type of exploratory research) should not be expected to deliver final results or answers to decision problems - yet many managers seem to use them for that purpose

}Cluster Sample (Probability Technique)

}Like stratified sampling, (1) the population is divided into mutually exclusive and exhaustive subsets }Unlike stratified sampling, (2) a simple random sample of subsets (i.e., clusters) is chosen }Most appropriate when subsets (or strata) are heterogeneous within but homogeneous between with respect to key variables

}Nonprobability Sample

}Neither sampling error nor the margin of sampling error can be estimated or calculated }Inferences cannot be made about the population }Inferences are limited to the sample

}Probability Sample

}One can statistically assess level of sampling error }Inferences can be made about the population, and not just the sample }Inferences are not limited to the sample

}Judgment Sample (Nonprobability Technique)

}Population elements are handpicked because they are expected to serve the research purpose }Example - Hire panelists who are knowledgeable about the issue being researched rather than selecting them at random

Convenience Sample (Nonprobability Technique)

}Population elements are sampled simply because they are in the right place at the right time }Also called "Accidental" Sample }Example - Television news "question of the day" polls

}Longitudinal Analysis

}Repeated measures, over time, of a fixed sample }Two primary types }Continuous panel - Fixed sample of respondents who are measured repeatedly over time with respect to the same variables }Discontinuous panel - Fixed sample of respondents who are measured repeated over time with respect to different variables

}Quota Sample (Nonprobability Technique) ex.

}Research Problem: Investigate 100 undergraduate student attitudes toward a controversial new technology fee

}Quota Sample (Nonprobability Technique)

}Sample chosen so that the proportion of sample elements with certain characteristics is about the same as the proportion of the elements with the characteristics in the target population }Stated more simply, certain important characteristics of the population are represented proportionately in the sample

}Stratified Sample (Probability Technique)

}Sample in which (1) the population is divided into mutually exclusive and exhaustive subsets and (2) a simple random sample of elements is chosen independently from each group/subset }Most appropriate when subsets (or strata) are homogeneous within but heterogeneous between with respect to key variables

}Systematic Sample (Probability Technique)

}Sample in which every kth element (k = sampling interval) in the population is selected for the sample pool after a random start

Probability Sample Techniques

}Simple Random }Systematic }Stratified }Cluster ¨Area

}Cross-section Study

}Single point in time measures of a sample selected from a population

}Good DSS provides

}Standardized up-to-the-minute reports needed for day-to-day operations }Custom reports that can easily be produced by managers when needed

Two most common scale types are both at the interval level of measurement

}Summated-Rating (Likert) Scale }Semantic-Differential Scale

}Datamining

}The use of analytic techniques to explore the data held within a dataset in order to isolate useful information

}Causal Research

}Used to establish cause-and-effect relationships between variables -ex. Determine whether evidence is sufficient to convict a suspect of a crime.

}Simple Random Sample (Probability Technique)

}Walking down the street and passing out surveys to unknown people "at random" is "random" in the everyday sense, but not random in a scientific sample sense }Example - Sample is drawn by a computer or from a physical list using a random number table

}Behavior

}What individuals have done or are doing }A physical activity or action that takes place under specific circumstances, at a particular time, and involves one or more actors or participants

Decision Problems

}describe the manager's view of the situation